Golden Economics & Silver Surprise

[theo]

Here are a few excepts from the article:

"Bank analysts are more bearish. UBS technical strategist Richard Adcock says, “The next leg of the bear trend is to be seen down to the long-term 50 percent retracement point at $1,303, which we would set as our objective.” "

"In contrast to almost every other gold analyst, I do not believe that physical gold markets will overwhelm paper gold markets. The price-setting mechanism will remain with paper gold markets, but it will be overwhelmingly bigger Asian paper gold markets that set the price. Not the comex! The comex is akin to a rotary phone, in a world of iPhones. The comex won’t blow up, but it will become irrelevant."

"It would appear that banks are buying gold, rather than shorting it, because they believe the deflation cycle is ending, and a cycle of rising inflation is beginning. The action of the T-bond suggests they are correct."

http://www.321gold.com/editorials/thoms ... 61113.html